TL;DR
Cold drinks are becoming more popular, making up 75% of Starbucks’ beverage sales. This trend isn’t just at Starbucks, as other coffee companies are also seeing a rise in demand for cold drinks. Younger consumers, particularly Gen Z, are driving this trend, finding cold drinks more refreshing, customizable, and Instagram-worthy. Independent retailers can tap into this trend to boost sales and attract younger customers.
Cold drinks are becoming hotter than ever in the beverage world, and this trend is not limited to just Starbucks. Recent data reveals that 75% of Starbucks’ beverage sales last quarter were from cold drinks. This surge in demand is not only a big opportunity for big coffee chains but also for small and independent retailers to boost their sales.
Starbucks saw a significant increase of 13% in cold espresso drinks sales last quarter, compared to the same period a year ago. Cold drinks with foam, like cold foam beverages, are gaining popularity and are among the fastest-growing customized orders at Starbucks.
This trend is not exclusive to Starbucks, as other coffee companies are also responding to the growing demand for cold beverages. For example, Keurig introduced K-Iced, a line of single-cup brewers designed for iced coffee, and Maxwell House launched instant iced lattes with foam, marking their first new product in nearly a decade.
The shift towards cold drinks is being driven by younger consumers, particularly those belonging to Generation Z. These consumers are more likely to opt for ready-to-drink cold coffee beverages instead of traditional hot brewed coffee. They find cold drinks more refreshing, delicious, and enjoyable, with greater opportunities for customization and a wider range of flavors and toppings.
Furthermore, cold coffee beverages are Instagram and TikTok-friendly, making them even more appealing to younger generations. The vibrant colors, clear cups, and various toppings create visually appealing drinks that are perfect for sharing on social media platforms.
Small and independent retailers can seize this trend by offering a variety of cold coffee and beverage options. Gen Z and other young consumers are likely to be drawn to these offerings, making it a great strategy to attract new customers. Customization and the visual appeal of these drinks can set independent retailers apart and provide a competitive edge.
This shift to cold drinks isn’t just a seasonal fad; it’s a lasting trend that has been growing over the past decade. Cold brew, iced macchiatos, iced specialty teas, and other cold coffee variations are among the fastest-growing non-alcoholic beverages on restaurant menus.
In conclusion, the rise in demand for cold drinks presents a significant opportunity for small and independent retailers to tap into this trend, attract younger consumers, and boost their sales. Providing a range of refreshing and visually appealing cold beverages can help retailers stay competitive and keep up with changing consumer preferences.
